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Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she Incurs the following expenses in connection with her condo: Insurance Advertising expense
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she Incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 1,110 775 6,050 840 1,490 760 9,300 During the year, Tamar rented out the condo for 84 days, receiving $32,000 of gross income. She personally used the condo for 40 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions associated with the condo)? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $166,000, what is her basis in the condo at the end of the year? d. Assume that gross rental revenue was $4,400 (rather than $32,000). What amount of for AGI deductions may Tamar deduct in the current year related to the condo?
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a The total amount of for AGI rental deductions Tamar may deduct in the current year related to the condo can be calculated as follows First we need to calculate the rental expenses allocated to the r...Get Instant Access to Expert-Tailored Solutions
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